kayakangler
FISH OR DIE
I got this email today thought you might find it intresting..
As you probably have heard, both the House and Senate have passed the Stimulus bill last week (with the Senate finally passing the bill just before 11:00 p.m.) . The President is expected to sign the bill this week (today). Please read the rest of this update provided by our research partners in Washington.
In addition, the President is scheduled to announce the Administration’s comprehensive housing recovery program next Wednesday. We will be in touch with more details about this announcement next week. We believe it will focus on foreclosure relief and the modification of existing loans (delinquent and possibly current).
Stimulus Bill
The final provisions of the bill include:
· Tax Credit
· Restoration of 2008 Mortgage Limits
· Increase of Reverse Mortgage Limit to $625,500
· Rural Housing Service Funding
Ø Tax Credit
Below is the link to the tax credit provision. (page 24)
http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdf
The 2008 tax credit provision has been amended as follows:
a. Tax credit is increased to $8,000
b. The income limits remain the same: ($75,000 for an individual; $150,000 for a couple).
c. First-time homebuyers and principal residences only.
d. Tax credit is available until December 1st (previously it expired on July 1st).
e. Waiver of recapture (i.e. no repayment requirement) for properties purchased in 2009 prior to December 1st
Ø The provision is retroactive to purchases made on or after January 1, 2009.
Ø Recapture section does apply to properties sold in first three years.
f. Waiver of prohibition on financing by mortgage revenue bonds is included
Ø FHA & GSE Mortgage Limits
Below is the link to the mortgage limit provision. (page 282)
http://thomas.loc.gov/home/h1/Recovery_Bill_Div_A.pdf
a. The bill restores the 2008 mortgage limit for an area if it is less than the mortgage amount currently in effect.
Ø The cut-off date is the same as occurred in 2008.
1. FHA: Borrower “Credit Approval” by December 31st.
2. GSEs: “mortgages originated” during 2009
Ø Effective date: The law appears to be effective immediately upon signature by the President. Moreover, since the 2008 mortgage limits are available, the implementation of these changes should occur quickly. Accordingly, we believe you can definitely take applications and process loans at the 2008 limits immediately. We expect the Obama Administration will move quickly to implement this change
b. Reverse mortgage limit is increased for 2009 (page 285)
Ø For 2009, the bill increases the reverse mortgage limit up to $625,500 (150% of the Fannie/Freddie limit)
Ø Since this limit is an increase, we will have to see how quickly HUD can implement this change. We expect it will be soon as well.
Ø Rural Housing Service Funding
Below is the link to the Rural housing provision. (page 8)
http://thomas.loc.gov/home/h1/Recovery_Bill_Div_A.pdf
There is $10.4 billion of funding for RHS Section 502 guaranteed loans. RHS has told us this is adequate funding for the rest of the year.
As you probably have heard, both the House and Senate have passed the Stimulus bill last week (with the Senate finally passing the bill just before 11:00 p.m.) . The President is expected to sign the bill this week (today). Please read the rest of this update provided by our research partners in Washington.
In addition, the President is scheduled to announce the Administration’s comprehensive housing recovery program next Wednesday. We will be in touch with more details about this announcement next week. We believe it will focus on foreclosure relief and the modification of existing loans (delinquent and possibly current).
Stimulus Bill
The final provisions of the bill include:
· Tax Credit
· Restoration of 2008 Mortgage Limits
· Increase of Reverse Mortgage Limit to $625,500
· Rural Housing Service Funding
Ø Tax Credit
Below is the link to the tax credit provision. (page 24)
http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdf
The 2008 tax credit provision has been amended as follows:
a. Tax credit is increased to $8,000
b. The income limits remain the same: ($75,000 for an individual; $150,000 for a couple).
c. First-time homebuyers and principal residences only.
d. Tax credit is available until December 1st (previously it expired on July 1st).
e. Waiver of recapture (i.e. no repayment requirement) for properties purchased in 2009 prior to December 1st
Ø The provision is retroactive to purchases made on or after January 1, 2009.
Ø Recapture section does apply to properties sold in first three years.
f. Waiver of prohibition on financing by mortgage revenue bonds is included
Ø FHA & GSE Mortgage Limits
Below is the link to the mortgage limit provision. (page 282)
http://thomas.loc.gov/home/h1/Recovery_Bill_Div_A.pdf
a. The bill restores the 2008 mortgage limit for an area if it is less than the mortgage amount currently in effect.
Ø The cut-off date is the same as occurred in 2008.
1. FHA: Borrower “Credit Approval” by December 31st.
2. GSEs: “mortgages originated” during 2009
Ø Effective date: The law appears to be effective immediately upon signature by the President. Moreover, since the 2008 mortgage limits are available, the implementation of these changes should occur quickly. Accordingly, we believe you can definitely take applications and process loans at the 2008 limits immediately. We expect the Obama Administration will move quickly to implement this change
b. Reverse mortgage limit is increased for 2009 (page 285)
Ø For 2009, the bill increases the reverse mortgage limit up to $625,500 (150% of the Fannie/Freddie limit)
Ø Since this limit is an increase, we will have to see how quickly HUD can implement this change. We expect it will be soon as well.
Ø Rural Housing Service Funding
Below is the link to the Rural housing provision. (page 8)
http://thomas.loc.gov/home/h1/Recovery_Bill_Div_A.pdf
There is $10.4 billion of funding for RHS Section 502 guaranteed loans. RHS has told us this is adequate funding for the rest of the year.